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The salespipeline is the most important sales management tool there is. Everything happens in the pipeline, or at least it should. The salespipeline is like the hard drive of a computer. The key to fast and efficient salespipeline is preventing crap from clogging it up.
The beginning of the year in sales always starts with a number. Salesleadership spends a lot of time going through plans, setting quota, preparing for Q1, looking at the pipeline, etc. The best thing salesleadership can do in 2012 is support the sales team. Then it moves to getting to the number.
Shitty sales management can kill pipeline movement. As sales leaders, we spend so much of our time evaluating our teams and the individuals on them, we often forget that our s**t can stink too. The place I see sales management fail the most (just behind hiring “A” players) is pipeline management.
It’s not uncommon for revenue to slide. It happens to all sales organizations at one time or another. Revenue being down, isn’t the most difficult problem. Knowing why revenue is down and where to look is the biggest challenge. When sales are down there are only 4 levers leadership can pull to improve sales.
Average Days in Pipeline: Take all the opportunities in the pipeline and add up the number of days they have been in the pipeline, then divide by the number of opportunities. How long do deals sit in the pipeline? How good is the sales rep at knowing when to stop working a deal and close it? There should be.
They spend more time with your sales people than anyone else in the company. They lead the pipeline review meetings. You can’t succeed without really good sales managers. Sales managers are like broadband connections. Sales managers connect the sales people to salesleadership.
Your plan needs to require massive action in response to the crisis that causes a loss or reduction of sales. There are only four ways to grow revenue, and you should use as many of them as possible, starting with selling more to your existing clients, communicating with them at a higher frequency, and making sure you retain them.
When we we’re not making quota, when our numbers are down, when prospects don’t call us back, when the pipeline is getting thin, we believe the problem is the sales team? But, are the sales people really the cause ? When we assume the cause of declining revenue is the sales team, we start to fix the sales team.
Almost every plan will have revenue numbers. Some plans will have strategies or initiatives to support their revenue goals. A good execution cadence addresses the following: Day to day progress – these are usually pipeline review meetings. A few will have specific tactics and timelines associated with goals.
The sales leader or sales person starts with what they said they were going to do that quarter. This includes KPI’s; quota, margin, pipeline, average deal size, win/loss ratio etc. This is where the sales rep or sales leader commits to a new set of quarterly numbers and initiatives.
At the start of each year, sales organizations begin their year with new, larger revenue goals, something that is true whether or not they reached their goals in the prior year. Without pipeline meetings to ensure the sales force is creating enough opportunities, you don’t know how you’re doing until it is too late.
The following obstacles to better sales results seem to be prevalent in companies – or pockets within those companies. Outdated Approach : If your approach to sales is from 1988 (or even earlier), it is obsolete and of limited effectiveness. There is no territory or account planning.
I almost NEVER have a EVP Sales, CEO, VP Sales say to me, we don’t have a pipeline review process, we don’t have a coaching process, we don’t have a sales process, everyone has those things, it’s how they execute them that comes into question. One sales leader may go right, while another goes left.
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